History Of Emergencies Shows Resilience Of NYSE And The American Psyche


Other events that either suspended trading or closed the exchange completely include blizzards, heat, a world war, funerals for dignitaries, and terrorist attacks.
Terrorist attacks occurred in 1920 and in 2001. The 1920 incident involved a bomb placed in a horse-drawn carriage that exploded in the heart of New York’s financial district.
Of course, everyone remembers the September 11, 2001 terrorist attacks that felled the World Trade Center.
Other closures include July 31, 1941 to prevent a selling frenzy as people sold their holdings to finance World War I.
Black Monday in 1929 was the day the market crashed and ushered in the Great Depression.
The exchange was kept open that day because it was thought that closing trading (which in those days was done by hand) would add to the panic.
The market also stayed open during the Pearl Harbor attack on December 7, 1941. The market dropped 7% the day after the attack over the next two days of trading. But the spring of 1942 saw the markets bounce back strongly. An investment made in blue chip stocks would have netted a return of 25%.
November 22, 1963, the day President John F. Kennedy was assassinated, saw the market drop 2.9% the next day but rebound 4.5% the day after. The market returned a 25% gain over the next year.
Hurricane Gloria shut the exchange down on September 27, 1985 and the 1993 World Trade Center terrorist attack began a market downturn of 13% over the next year.
Trading closed for four days after the September 11, 2001 attacks. After the markets reopened, the Dow fell 14%. But within a few weeks, all of the losses had been recouped.


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